Question 1

Why are drinks almost always included in combo meals?

Accepted Answer

Fountain drinks have extremely high profit margins (often 90% or more). Including a high-margin drink in the combo helps offset the lower margins on the food items, making the overall combo more profitable.

Question 2

What is 'upselling' in the context of a combo meal?

Accepted Answer

Upselling is encouraging a customer to spend more than they originally intended. For combo meals, this often means asking 'Would you like to make that a large for just 50 cents more?'. The incremental cost of a larger drink or fries is minimal, so most of that extra 50 cents is pure profit.

Question 3

Should I offer a discount on my most popular item in a combo?

Accepted Answer

It can be a powerful strategy. Bundling a popular, high-demand item (your 'Star') with a high-margin item (like a drink or a new side) can increase the sales of the high-margin item. The perceived value of the deal is high because of the popular entrée.

Question 4

How do I calculate the 'Total Cost of Individual Items'?

Accepted Answer

You need an accurate recipe cost for each item in the combo. This involves summing up the cost of every single ingredient (e.g., bun, patty, cheese, lettuce, sauce for a burger), as well as the cost of the fries and the drink syrup/cup/lid/straw. A detailed Recipe Costing Calculator is best for this.

Question 5

Is it better to have a higher profit margin or higher sales volume?

Accepted Answer

It's a balance. A combo with a 75% margin that only sells 10 times a day is less profitable overall than a combo with a 65% margin that sells 100 times a day. The goal of a combo is often to drive volume, so accepting a slightly lower margin to dramatically increase total units sold is a common and effective strategy.

Combo Meal Profitability Tool

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Understanding Combo Meal Profitability

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